Low-cost Airlines - Taking Indian Aviation by Storm*



Case Code : CLCB030
Publication date : 2005
Subject : Consumer Behavior
Industry : -
Length : 04 Pages
Price : Rs. 100

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Key words:

Low cost carrier (LCC), Centre for Asia Pacific Aviation, Air Deccan, Corporate Flying, Bulk Reservation, Indian Airlines, SpiceJet, Kingfisher, Air India and Kochi International Airport


* This caselet is intended for use only in class discussions.
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The caselet delves into the reasons for the success of low-cost airlines in India. It also details the promotional strategies used by various airlines. The caselet speaks about how various players are waiting to enter the low-cost aviation industry in India and ends with a note on the negative attributes associated with low-cost airlines.


How low-cost airlines have changed the aviation scenario in India
The reasons for the development and success of low-cost airlines
Promotional strategies followed by low-cost airlines


Pantaloon Retail (India) Ltd. (PRIL), started out in 1987 as Manz Wear Pvt. Ltd., dealing primarily, in menswear. In 1993-94, the company launched Pantaloon Shoppe as complete menswear stores. "The entry of discount airlines will open up the bottom of the market in India," said Kapil Kaul, a consultant with the Sydney-based Centre for Asia Pacific Aviation.

The Indian Aviation Minister, Praful Patel, has also been bullish on the Indian aviation industry...

Questions for Discussion:

1. It has been estimated that 16 million air tickets were sold in India for the year that ended March 2005, and the number of tickets sold is expected to grow at the rate of 20-25% in the next five years. Low cost airlines are expected to play a major role in the growth of the Indian aviation industry. What do you think is the future of LCCs in India?

2. Low-cost carriers have made flying affordable for the common man. What were the strategies used by the low-cost airlines to ensure low fares?